SPI consortium withdraws CEDC offer

SPI Group has withdrawn its proposal to restructure troubled vodka producer CEDC, just days after placing a bid.

A bid made by the SPI Group consortium for embattled CEDC has been withdrawn after just seven days

The owner of Stolichnaya vodka, along with a consortium of other investors, including investment company A1 and CEDC shareholder Mark Kaufman, have pulled their bid offer of US$280 million cash and $650m in new debt to restructure the group, which was made just last week (21 March).

In a statement, the consortium said: “SPI Group had agreed to join a consortium consisting of A1 Investment Company and Mark Kaufman that was preparing a restructuring proposal in connection with the expected bankruptcy of CEDC.

“Today, however, A1, together with the other members of the consortium, determined the transaction was no longer sufficiently attractive.”

A spokesperson for SPI Group could not confirm whether the consortium has withdrawn its interest completely or would be reconsidering its bid for a second attempt at a later date.

Roust Trading owner Roustam Tariko has also launched a restructuring bid for CEDC, one of the largest producers of vodka in the world. He has offered to buy the notes he doesn’t own – approximately $155.3m – for $25m in cash and $30m in secured notes issued by Roust.